dealflow
envelope $200M

← Targets

Encompass Health Rehabilitation Hosp

dba Encompass Health Rehabilitation Hospital Of Fredericksburg · Fredericksburg, Spotsylvania County, VA · CCN 493032
Licensed to Encompass Health Rehabilitation Hospital Of Fredericksburg, Llc

Composite
37.4
rank score
Distress
7
FY2024
Fit
81
vs thesis
Estimated ticket
$18.9M–$75.4M
58 beds · within envelope
Ownership
for-profit
RH

Why it ranks here

  • 90-150 days cash on hand
  • margin slipping
  • part of a multi-hospital chain — divestiture candidate
  • urban — higher occupancy and iteration surface
  • specialty facility — narrower problem scope
  • bed count in the target band
  • ticket size somewhat below the envelope
  • strong occupancy — good iteration surface
  • for-profit — no charitable conversion review

Latest financials · FY2024

Net patient revenue$34.3M
Operating margin 17.7%
Total margin 17.8%
Days cash on hand 118
Current ratio 7.86
Occupancy90%

Facility

Beds58
Facility typeRH
Settingurban
Ownership classfor-profit
Per-bed (low) $325K
Per-bed (high) $1.3M

Financial history

FYBedsNet patient rev Net incomeOp margin Total marginDays cash Current ratioOccupancy DischargesDistress
2021 58 $31.4M $5.7M 18.1% 18.1% 119 8.47 91% 1,521 4
2022 58 $32.0M $4.4M 13.8% 13.9% 105 6.09 92% 1,548 9
2023 58 $32.1M $5.8M 17.9% 18.0% 134 10.00 90% 1,643 4
2024 58 $34.3M $6.1M 17.7% 17.8% 118 7.86 90% 1,675 7

Owners

OwnerRole%SinceType
Encompass Health Corporation
Birmingham, AL
5% or greater indirect ownership interest 100 2014-10 chain
Encompass Health Owned Hospitals Holdings Llc
Birmingham, AL
5% or greater direct ownership interest 100 2014-10
Truist Bank
Charlotte, NC
5% or greater security interest 100 2026-03
Vanguard Group Inc
Malvern, PA
5% or greater indirect ownership interest 10 2023-12
Blackrock Inc
New York, NY
5% or greater indirect ownership interest 9 2023-12
Anand Murthy w-2 managing employee 2023-11
Carey Mcrae operational/managerial control 2025-01
Carey Mcrae other 2025-01
Encompass Health Corporation
Birmingham, AL
operational/managerial control 2014-10 chain
Mark Tarr operational/managerial control 2017-01
Robert Mccallum operational/managerial control 2025-01
Robert Mccallum other 2025-01

Ownership changes

No CMS ownership change on record since 2016 — this hospital has not traded in at least a decade.

Who has been buying in VA

Completed CMS ownership changes in this state. These buyers already cleared the licensure process here — and whoever advised them knows this market.

DateBuyerSellerHospitalBeds
2017-06-01 Coastal Virginia Rehabilitation Llc Rehabilitation Institute Of Virginia Inc Riverside Rehabilitation Institute 50